Strategy Ditches 'Never Sell' Bitcoin Thesis as Saylor Tracks 200-Week Moving Average
Michael Saylor's company, Strategy (formerly MicroStrategy), has made a significant shift in its bitcoin strategy. For four years, the company accumulated over 843,000 BTC through various means, with an average cost basis of $75,419 per coin. However, since August 2020, when it first started buying bitcoin, the price of Bitcoin has been trading below Strategy's cost basis.
Last week, Strategy sold 1,638 BTC for approximately $104.73 million, reducing its total holdings to 842,138 BTC. The company also raised $290.6 million through common stock sales and repurchased STRC preferred shares for $81.2 million. This move has grown its USD reserve to $4 billion.
Strategy is now tracking the 200-week moving average on its website, which currently sits at approximately $63,770. Historically, Bitcoin has traded above this level 92% of the time. Saylor's decision to highlight this indicator publicly suggests that he views the current price as near a long-term bottom.